Asset allocation starts and ends with the goals of the client, and is necessarily unique and tailored to each investor’s specific needs. Why is it so important? Well, over 90% of investment returns are a direct result of the “buckets” you put your assets in, and less than 4% is attributable to which individual stocks or bonds you buy! Brinson, Hood and Beebower, “Determinants of Portfolio Performance” (1986, 1991). Our process is risk-focused, which helps us to determine sensitivities to various market conditions and how correlations and other hidden variables will impact how we achieve our client’s goals.